After a 12-year hiatus, Alpena Municipal Council accepted a bid for garbage removal service.
In February, the city's contract with L&N Disposal was set to expire and the company asked for a three-year renewal, which was built into the contract between the parties.
L&N proposed charging the city $7.25 per cubic yard of waste and $2 per trash can. Councilman David Karschnick noticed other government entities were being charged less and the board voted to put the service up for bids.
On March 8 bids were opened, with three companies - Jewel Disposal, L&N Disposal and Lindle Refuse - submitting bids. L&N's had the lowest price at $4.50 per cubic yard and $2 per trash can.
"I don't know whether to be offended or impressed ... how did the price of garbage go down so quickly? I'm really struggling with that," Councilman Michael Nunneley said.
Based on estimates from City Engineer Rich Sullenger's report, L&N's new price will save the city over $6,000 in 2010.
The council voted 3-1, which Nunneley dissenting, to accept the bid.
"I'd like to send a real clear message to folks, that if you're going to do business with the city and we have a long-term relationship and suddenly we go through a circumstance like this you may want to think twice about how you renew your contracts with us," he said.
The council previously directed City Manager Thad Taylor to draft a policy that would identify how often services should be put out to bids. The garbage removal contract was originally bid in 1998 and had been renewed every three years.
Councilman Shawn Sexton said costs will creep up if a service is only put to bids every 12 years, but said the city is working to ensure that doesn't happen again. He said he voted to accept L&N's bid because it saved the city money.
"You have to prove to contractors that the city wants to be competitive and wants contractors to be competitive as well," Sexton said.
In other business:
- Huron Humane Society submitted a budget request of $17,000 for the 2010-11 fiscal year. The organization received $14,000 from the city in 2009-2010. Taylor said the contribution will be discussed when the first draft of the budget is reviewed in May.
Of the 521 animals the humane society cared for in 2009, 297 were from the city.
- an agreement with Alpena Public Schools for a school liaison officer was approved. The city and APS each pay $36,994 to fund the position.
- the board met in closed session to discuss the purchase of a property.
Sean Harkins can be reached via e-mail at sharkins@thealpenanews.com or by phone at 358-5688.